Bruce Ely was quoted in a State Tax Notes article entitled “Cases to Watch in 2015.” The article explores CSX Transportation Inc. v. Department of Revenue case in which the Supreme Court will decide whether Alabama’s motor fuel sales tax exemption for motor and waterway carriers discriminates against railroads, violating the federal Railroad Revitalization and Regulatory Reform Act of 1976 (4R-Act).
“The justices’ fixation on water carriers was a bit surprising but seemed to play into the hand of CSX’s well-respected attorney, Carter Phillips,” said Ely. “But should the Court punish a state via the 4R-Act if the state grants an exemption to a competitor that is required by another federal law or act? Here, I suspect, the railroads would argue for a broad definition of their competitive class.”
Read the complete “Cases to Watch in 2015” published on page 587 of State Tax Notes in December 2014 (subscription required).